Agreement for financial aid from Germany to Mozambique signed Tuesday

4 October 2012

The Mozambican and German governments Tuesday in Maputo signed an agreement for Germany to donate 28.5 million euros to support Mozambican economic development by promoting the financial sector, the Mozambican press reported.

The donation will be provided by German development bank Kreditanstalt für Wiederaufbau (KfW), and will be used to open up a credit line of 18 million euros to fund micro, small and medium-sized companies, one for banking services worth 4 million euros, and a deposit guarantee fund worth 4.5 million euros.

Germany is one of Mozambique’s main cooperation partners and is part of the so-called G19 group of countries and organisations that fund the State Budget. Last year Germany provided 15 million euros.

In July the two countries signed another technical cooperation agreement worth 5.6 million euros to adopt special measures on climate change issues, as well as another similar agreement for the city of Beira worth 13 million euros, which was signed in May.

This current agreement was signed by Mozambique’s Finance Minister, Manuel Chang, and Ralf Orlik, director of KfW. (macauhub)